Quick Summary: A VA home loan is a mortgage from a private lender with part of the loan guaranteed by the U.S. Department of Veterans Affairs. Eligible Veterans, service members, and surviving spouses may not need a down payment, pay no monthly mortgage insurance, and reuse the benefit for future homes.
The VA home loan is one of the most valuable benefits you earned through your service, and one of the most misunderstood. Veterans hear that they can’t use it twice, that sellers won’t accept it, or that it takes too long to close. None of that holds up.
I’m Scott Swinford, a mortgage loan originator (NMLS #138422) based in Crown Point, Indiana, and a former firefighter paramedic. I’ve been a loan officer for more than 20 years, and VA loans are the center of my business. This page covers how the program works, who qualifies, what it costs, and how to use it.
What is a VA home loan?
A VA home loan is a mortgage made by a private lender, such as a bank or mortgage company, with part of the loan guaranteed by the U.S. Department of Veterans Affairs. The VA doesn’t lend you the money. Its guarantee protects the lender if the loan goes into default, and that protection is what allows lenders to offer VA borrowers better terms than most other loans.
The program dates back to the original GI Bill in 1944. It covers buying a home, building or buying new construction, and refinancing a home you already own.
What are the benefits of a VA home loan?
The biggest advantages show up in your upfront cash and your monthly payment.
- A down payment may not be required. Eligible buyers with full entitlement may not need one, as long as the price doesn’t exceed the appraised value.
- No monthly mortgage insurance. Most conventional loans with a small down payment, and all FHA loans, carry ongoing mortgage insurance. VA loans don’t.
- A one-time funding fee instead. Most borrowers pay a funding fee that can be financed into the loan. Veterans who receive VA disability compensation don’t pay it.
- Help with closing costs. Sellers can pay your closing costs, and the VA allows additional seller concessions of up to 4% of the home’s reasonable value.
- No prepayment penalty. You can pay extra or pay off the loan early without a fee.
- A reusable benefit. You can use your VA loan again after you sell, and sometimes while you still own a home with a VA loan.
- An assumable loan. A qualified buyer can take over your VA loan when you sell, which can be valuable if your rate is lower than current rates.
- Support if you fall behind. The VA offers assistance to borrowers facing hardship, working with your loan servicer to help you keep your home.
Who qualifies for a VA home loan?
You qualify based on your service history and a discharge other than dishonorable. For most people reading this, the rules are:
- Veterans and active-duty members who served after August 2, 1990: at least 24 continuous months, or the full period you were called or ordered to active duty (at least 90 days).
- National Guard members: at least 90 days of non-training active-duty Title 10 service, or 6 creditable years in the Guard.
- Reserve members: at least 90 days of non-training active-duty service, or 6 creditable years in the Selected Reserve.
- Surviving spouses: those who receive certain types of VA Dependency and Indemnity Compensation, or whose spouse is missing in action or a prisoner of war.
Earlier service periods have their own rules, and a discharge for a service-connected disability can qualify you with less time. See the full breakdown on my VA loan eligibility page or the VA’s eligibility requirements. Your lender proves your eligibility with a Certificate of Eligibility, and I can pull yours at no cost. Here’s how the VA Certificate of Eligibility works.
How much can I borrow with a VA loan?
If you have full entitlement, the VA sets no loan limit. Your lender decides how much you can borrow based on your income, debts, credit, and the appraised value of the home.
You have full entitlement if you’ve never used your benefit, or if you used it, repaid the loan in full, and sold the home. If part of your entitlement is still tied to another loan, the county loan limit comes into play. The VA uses the same county limits as Fannie Mae and Freddie Mac, and for 2026 the limit is $832,750 in most U.S. counties, including all of Northwest Indiana. Your remaining entitlement determines how much you can borrow before you need a down payment. The VA’s loan limit page explains the math, and I run it for you before you shop.
What does a VA loan cost?
The main VA-specific cost is the funding fee, a one-time charge paid to the VA that keeps the program running. You can pay it at closing or add it to your loan amount. These rates took effect April 7, 2023:
| Loan type | Down payment | First use | After first use |
|---|---|---|---|
| Purchase or construction | Less than 5% | 2.15% | 3.3% |
| Purchase or construction | 5% or more | 1.5% | 1.5% |
| Purchase or construction | 10% or more | 1.25% | 1.25% |
| Cash-out refinance | Not applicable | 2.15% | 3.3% |
| IRRRL (streamline refinance) | Not applicable | 0.5% | 0.5% |
| Loan assumption | Not applicable | 0.5% | 0.5% |
You don’t pay the funding fee if you:
- Receive VA compensation for a service-connected disability, or are eligible for it but receive retirement or active-duty pay instead
- Received a proposed or memorandum rating before closing that says you’re eligible for compensation
- Are a surviving spouse receiving Dependency and Indemnity Compensation
- Are an active-duty member who received the Purple Heart, with documentation by closing
If you’re awarded disability compensation after closing with an effective date before your closing date, you may qualify for a refund of the fee. You’ll also have normal closing costs like the appraisal, title insurance, and lender fees. On a purchase, the funding fee is the only cost you can add to the loan. You pay the rest at closing unless the seller agrees to cover some of it. Details are on the VA’s funding fee and closing cost page.
What can I use a VA loan for?
You can use a VA loan to buy or refinance a home you’ll live in as your primary residence. Eligible uses include:
- A single-family home, townhome, or condo in a VA-approved condo project
- A 2- to 4-unit property, as long as you live in one unit
- New construction from a builder
- A manufactured home on a permanent foundation titled as real property
- A refinance of your current VA loan to a lower rate with an IRRRL streamline refinance
- A cash-out refinance of any loan type, VA or not
The home must also pass the VA appraisal, which confirms its value and checks that it’s safe, structurally sound, and sanitary under the VA’s Minimum Property Requirements.
How does the VA loan process work?
- Get your Certificate of Eligibility. I request it for you, often in minutes.
- Get fully pre-approved. We review your income, credit, residual income, entitlement, and funding fee status before you shop.
- Find a home. Work with an agent who knows VA offers and the appraisal process.
- Appraisal and underwriting. A VA-assigned appraiser values the home while underwriting finalizes your approval.
- Close. Sign your documents and get your keys.
Find out what your VA benefit can do for you.
Call 219-695-0369 or text 219-758-8072
VA Home Loan FAQs
Can I use a VA loan more than once?
Yes. Your VA benefit is reusable. Once a VA loan is paid off and the home is sold, your full entitlement can be restored. You can also keep one VA loan and buy again with your remaining entitlement, as long as you meet the occupancy rules.
Can I have two VA loans at the same time?
Yes, in some cases. If you keep your first home and move for a new job or a growing family, your remaining entitlement may cover a second VA loan. The amount you can borrow before you need a down payment depends on the county loan limit and how much entitlement you’ve already used.
Is there a minimum credit score for a VA loan?
The VA doesn’t set one. Each lender sets its own minimum and reviews your full file, including residual income and payment history. If your score is a concern, ask before you apply so you know where you stand.
Can the seller pay my closing costs on a VA loan?
Yes. Sellers can pay your normal closing costs and reasonable discount points, and those don’t count toward the 4% limit. Separately, the VA allows seller concessions of up to 4% of the home’s reasonable value. Concessions include items like your VA funding fee, prepaid taxes and insurance, or paying off a debt or judgment so you can qualify. Your agent negotiates both in the offer.
Do VA loans take longer to close?
Not by design. Most delays come from appraisal repairs or missing documents, not the VA itself. Getting your Certificate of Eligibility and paperwork in early is the best way to keep your closing on schedule.
Why work with Scott Swinford on your VA loan?
Before I became a loan officer, I served as a firefighter paramedic, and I built American Hero Home Loans to get Veterans into homes using the benefits they earned. I’m licensed in Indiana, Illinois, and Michigan, and I work from Crown Point, serving Veterans across Northwest Indiana.
In more than 20 years as a loan officer, I’ve learned that the details decide whether a VA loan closes smoothly: entitlement math, residual income, VA disability income, funding fee exemptions, and appraisal repairs. That focus has earned 50+ five-star Google reviews. Veterans and first responders also get access to the American Hero Rewards Program.
Call 219-695-0369 or text me at 219-758-8072. You can also email sswinford@hancockmortgage.com. When you’re ready, apply online.
Page reviewed October 2026. Program details from VA.gov.
